Israeli Navy shells Khan Yunis coast, according to Noor News, while Israel also conducts airstrikes on multiple towns in southern Lebanon, according to Al Jazeera

The reports of Israeli military actions in Gaza and Lebanon highlight an escalation in regional tensions, which could contribute to risk-off sentiment in the markets.

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This situation is likely to support demand for safe-haven assets like gold and the JPY while applying downward pressure on risk-sensitive currencies like the EUR and GBP. Additionally, energy prices, particularly WTI, may see volatility as the conflict influences supply chain perceptions.

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